Ireland’s electricity premium is the inevitable result of a policy mismatch that prioritizes data center expansion over household affordability and energy diversification. This structural failure forces ordinary citizens to bear the financial burden of a systemically inefficient and gas-dependent grid.
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Irish households are paying €480 a year more for electricity, compared to the EU averageAdded:
New figures show Ireland has the highest household electricity prices in the European Union. The EU statistics agency Euroat reports that domestic electricity costs here were nearly 40% above the EU average for the second half of last year. Our consumer affairs correspondent Angus Cox has been finding out why.
These figures from Euroat show that between July and December 2025, electricity prices in Ireland were higher than anywhere else in the European Union. Irish households were paying more than 40 cent per kilowatt hour, significantly more than the EU average of just under 29 cent, meaning the average household here was paying around €480 a year more for electricity compared to that EU average. Germany is the second most expensive EU member in terms of electricity prices, nearly 2 cent per kilowatt hour, cheaper than Ireland. While at the bottom of the scale, households in Hungary pay significantly less for power than we do, 10.82 cent per kilowatt hour. Euroat also tells us Irish electricity prices jumped by almost a third between the second half of 2024 and the same period last year. So why is this the case?
Well, there are a few factors we know are contributing. For example, Ireland has a fairly dispersed population with a lot of one-off housing, which means getting electricity to all the places it needs to takes a lot of upkeep and it's costly. Data centers, they're also a factor. In 2024, data centers accounted for more than a fifth of all metered electricity in the country, proportionally much higher than elsewhere. In fact, globally, data centers are responsible for just 1 and a half% of total electricity consumption.
So, Ireland is a huge outlier and this puts added pressure on the grid. And when supply is tight, we need to use emergency gas generation to meet demand, and that's expensive. In general, Ireland is also more reliant on gas for electricity generation. Gas made up 42% of our electricity generation in 2024 compared to the EU average of just 16%.
And volatility in fossil fuel prices can significantly add to energy costs.
>> Angus Cox reporting there. Well, as people try to cope with increased energy prices, the cabinet has been discussing measures to help households and businesses struggling with their bills.
The issue also dominated leaders questions this afternoon.
Summer sun might be here, but storm clouds continued to gather for the coalition trying to grapple the ongoing energy crisis. testy exchanges in the Doyle with Shinfane claiming a gutless approach from government was to blame for Ireland having the highest electricity prices in Europe.
>> All you offer is spoof and distraction.
Well, nobody's going to buy that t-sh.
>> We have already acted and you know that 750 million is not spoof. It's real funding that we've budgeted for. We've allocated in terms of the food production sector, in terms of farmers, um in terms of contractors, uh and we have hundreds of thousands of people working in all of those sectors. That's not it might be spoofed to you because you're a Johnny come lately when it comes to the farming world.
>> The cabinet met this evening to discuss more supports for homes and businesses struggling to pay their bills. Energy Minister Darra O'Brien updating ministers on the work of a special task force due to make recommendations by the end of September. But opposition TD steadfast that's not soon enough.
>> Social Democrats are calling again for the for the government to actually give a targeted energy credit of €400 euro to households that are earning less than 70,000 euro.
>> This matters to people. This is something critically important because they're feeling it in their household energy bills and we have these distractions constantly being brought forward by government. Tomorrow, the Doyle debates a labor motion calling for an emergency budget as the opposition continues to push for immediate supports. The coalition content to wait amid ongoing uncertainty in the Middle East. Barry Lanahan, RTE News, Lster House.
>> Let's speak now to our political correspondent Miholan. He is at Lster House and Mihol, as we saw in Barry's report there, pressure is mounting on the government to intervene with cost of living supports. Is that likely to happen?
Well, I think all the indications from government is that they want to wait until the budget for any major interventions. The tishuk reiterating that uh today saying that there was a budget on the way. Things like tax would also be a lever that the government could use and there was a particular emphasis from him and trying to cushion those who will are most affected by rising energy prices. Now in the last while, Minister Daro O'Brien has been updating the cabinet and said that fuel supplies into this country remain robust and reliable, but conceding that the volatility internationally is posing a big problem around energy costs for households and for businesses. And as you heard in Barry's report there, that task force is drawing up proposals. Now there is mention and the cabinet has heard about specific proposals around a short-term uh response and something could be announced on that front uh sometime uh between July and the end of September which of course is getting close to the budget but that could center on those decisions around whether or not to extend excise uh duty which of course uh those present cuts could run out in the end of July. government would have to make a decision on that before the budget. And I think there is also an unsaid uh consideration here and that is that the doll recess is approaching. Uh so there would seem to be intent on the government's part to try and get to that and get to the budget before doing anything major with the opposition adamant that the time to act is now.
>> Mihan at Lster House. Thank you.
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